‘Chumpan Workshop’ Controversy: Chairman Bae Dong-wook Apologizes... Decides Not to Resign (Comprehensive)

On the morning of the 14th, Bae Dong-wook, Chairman of the Korea Federation of Small and Medium Business, was holding a press conference at the Korea Federation of SMEs in Yeouido, Seoul, to explain the so-called 'Dance Workshop' held last month, and appeared to be holding back tears as emotions welled up. Photo by Yonhap News

[Asia Economy Reporter Moon Hyewon] On the 14th, Bae Dong-wook, president of the Korea Federation of Micro Enterprise (hereinafter referred to as KOFME), issued an official apology regarding the controversy over the 'dance party workshop' but decided not to resign.

On the same day, Bae held a press conference at the Korea Federation of Small and Medium Business in Yeouido, Seoul, stating, "I deeply bow my head and sincerely apologize to the 7 million micro-enterprises as well as the public for causing concern during this difficult and serious time due to the economic recession and the impact of the novel coronavirus infection (COVID-19), regardless of the truthfulness of the reported content."

Regarding the problematic event, Bae explained, "The newly launched executive team organized a tightly scheduled workshop with various programs for the board of directors, the regular general meeting, and the future development of the federation," adding, "The controversial content reported involved a group of micro-enterprise entertainers who rely on performances as their main source of income. Hearing that they were also struggling to make a living due to COVID-19, we provided a minimal amount of support and held a 15-minute session to comfort the heads of affiliated organizations who have been working hard leading their groups."

When asked why the workshop, which included a girl group performance, was held despite concerns over COVID-19 infections leading to cancellations or postponements of various events, he said, "Education on the Micro Enterprise Basic Act, which will be implemented from next year, was urgently needed for the executives of 257 local branches and sub-branches under the federation nationwide," explaining, "The regional presidents participating in the event were generally in their 40s to 60s, and they responded that it was their first time receiving such education at their age amid a tight schedule, so recreation was necessary."

KOFME invited a girl group to the 'National Regional Organizations and Industry Group Education and Policy Workshop' held in Pyeongchang, Gangwon Province, on the 25th and 26th of last month, where drinking and provocative dancing caused controversy. Some criticized it as inappropriate given the COVID-19 situation, where many micro-enterprises are closing down.

Immediately after the controversy, President Bae sent an apology letter to KOFME members but avoided contact with the media for over two weeks and was reluctant to make an official statement. Regarding the delay in issuing a statement, Bae said, "At first, I did not even realize that the controversial part was a serious mistake, and I thought it would be better to announce a position after confirming that no one who attended the event tested positive during the approximately two-week COVID-19 quarantine period."

Regarding allegations that he funneled orders for wreaths and bouquets from the federation to a flower shop run by his daughter, he responded, "My wife is serving as a director of KOFME in Suwon, Gyeonggi Province, and misunderstandings arose during the process of ending transactions with the flower company that the previous executive team had been dealing with," adding, "There was no ill intention, but I think it was ethically wrong, and I will not conduct transactions with that flower shop in the future."

Whether President Bae's statement on the day can quell the internal and external calls for his resignation remains uncertain. Within KOFME, there is a growing sense of responsibility that the workshop controversy hindered the federation's ability to fully exert its negotiating power during the minimum wage negotiation process. In this regard, Bae said, "I personally do not think it had a significant direct impact on the minimum wage decision."

Sixteen heads of organizations affiliated with KOFME formed an emergency countermeasure committee the day before and held a press conference, stating, "The KOFME members participating in the Minimum Wage Commission have been subjected to ridicule from the labor side and remarks about resigning from their positions due to the workshop controversy, causing severe self-loathing," adding, "The sense of loss and disappointment among micro-enterprises is spreading like wildfire into anger, and the hard-earned status of KOFME is plummeting into an abyss from which recovery seems impossible. Only President Bae's resignation can be the sole solution to the current dire situation."